Market Themes
The U.S. Core Consumer Price Index fell throughout the quarter from 3.8 to 3.3 percent, the lowest since April. The current market environment has provided room for the Federal Reserve to reduce the Fed Funds rate.
Investors complacent in cash may miss potential total return opportunities in core fixed income. The current environment, with higher yields across the curve, provides a positive asymmetric risk reward profile.
Concentration in U.S. large cap markets continues to support returns, with nearly half of the S&P 500 Index constituents underperforming during the quarter and generating negative average returns. Read more of our Second Quarter Considerations here.
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